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Building Premium Brands, Creating Premium Experiences Deutsche Bank Global Consumer Conference Paris, 12 th June 2018
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Building Premium Brands, Creating Premium Experiences€¦ · Building Premium Brands, Creating Premium Experiences Deutsche Bank Global Consumer Conference Paris, 12th June 2018.

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Page 1: Building Premium Brands, Creating Premium Experiences€¦ · Building Premium Brands, Creating Premium Experiences Deutsche Bank Global Consumer Conference Paris, 12th June 2018.

Building Premium Brands,

Creating Premium Experiences

Deutsche Bank Global Consumer Conference

Paris, 12th June 2018

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S T R A T E G I C P I L L A R S

B U I L D I N G I C O N I C

B R A N D SSustain steady growth of global and regional brands to improve Group margins

Increase local priority brands position in their markets

Develop Group presence in high potential markets

Reduce consistently and optimize resources

Ensure timely & reliable deliveries/services to markets

Attract, engage and develop people with a strong fit with Campari culture

Enhance organization ability to reduce G&A and accomplish our strategic goals

Strengthen our sustainability to increase key stakeholders’ trust and loyalty

5 0 % O R G A N I C

G R O W T H

5 0 % E X T E R N A L

G R O W T H

N E T S A L E S : + 6 . 6 % ( O R G A N I C + 4 . 6 % )

C A G R 2 0 0 7 - 2 0 1 7

E B I T ( 1 ) : + 6 . 5 % ( O R G A N I C + 3 . 4 % )

F R E E C A S H F L O W : + 6 . 1 %

T S R ( 2 ) : + 3 2 5 . 8 % ( A N N U A L I Z E D + 1 5 . 6 % )

(1) EBIT adjusted

(2) Total Shareholder Return with cash dividend

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S T R A T E G Y

W E L L B A L A N C E D

P O R T F O L I OThe Group continues to drive outperformance of key high-margin brand and

market combinations, with FY17 organic sales growth at +6.3% and net sales

registering €1,753.4 million (1)

Global Priorities: 53% of total. Organic growth of +7.7%

Regional Priorities: 17% of total. Organic growth of +13.0%

Local Priorities: 12% of total. Organic growth of +1.3%

L O C A L

P R I O R I T I E S

R E G I O N A L

P R I O R I T I E S

R E S T O F

P O R T F O L I O

(1) Post IFRS15 restatement

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S T R A T E G Y

D E L I V E R I N G

O N S T R AT E G YContinuous sales mix improvement driving positive margin momentum and

fueling consistent re-investments in brand building and business infrastructure

(1) Bps rounded to the nearest ten

Organic net sales growth

Gross margin improvement FY 2014 – FY 2017 (1)

53.3%

55.4%57.0%

59.2%

11

0 b

ps

60

bp

s

90

bp

s

11

0 b

ps

EBIT adjusted margin improvement FY 2014 - FY 2017 (1)

19.1%

20.1%20.4%

21.0%10

bp

s

60

bp

s

-20

bp

s

60

bp

s

40

bp

s

EBIT adjusted cumulative margin improvement by key driver (1)

19.1%

21.0%27

0 b

ps

(80

) b

ps

(11

0)

bp

s

+1

10

bp

s

+80 bps organic

Gross Margin FX & PerimeterSG&AA&P FY 2017FY 2014

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I N D U S T R Y T R E N D S

L E V E R A G I N G

P R E M I U MPremiumness establishes difference – at an affordable price as well as being

aspirational. Consumers relish experimentation and seek brands that express

individuality. But how is it addressed?

Building desire: creative thinking to drive identity and differentiation.

Consistency: Long-term approach from the heart of the brand; staying true.

New occasions: authenticity in meaning, value and occasions that connect to the

brand.

Emotion: celebration of a place, culture, attitude to life.

New audiences: imagination and originality to assert status, opening up brands

to new consumers.

Pleasure: influenced by the luxury approach, creating happiness and pleasure

through unique expressions and experiences.

46% 32% 16% 5% 1% >0.5% >0.1%100%

Past and expected future growth of Premium+ spirits segments (IWSR)(1)

(1) Source: IWSR 2016 (value data)

C L A S S I C C O C K T A I L R E N A I S S A N C E

R I S E O F M I X O L O G Y

N E W B I T T E R & A P E R I T I F O C C A S I O N I N G

O N - P R E M I S E E X P A N S I O N

C O G N A C R E V I V A L

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A M A S T E R P I E C E R E I M A G I N E D6

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T H E G RA N DMA R R IAG E

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It all started with a meticulous study of an

intriguing product: the unique alchemy of

cognac, from the region’s five finest crus,

and bitter orange essence, crafted from

sun-dried peels of the ‘citrus

bigaradia’orange.

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I N P RAI S E O F

T H E H E R I TA G E

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Every detail of Grand Marnier’s

illustrious story was carefully examined.

From its 1827 origins and connection to

The Ritz hotel in Paris, to its iconic

present, knowledge of a rich, decadent

history inspired the crafting of the

brand’s future.

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T H E N O B L E P R OVE NAN C E

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The refined character of

Grand Marnier owes much

to its 13th century home and place of

creation, the Château

de Bourg-Charente, nestled

atop a hill at the border of the Petite

and Grande Champagne regions of

Cognac, France.

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O U R T I M E L E S SD E S I G N

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Throughout the centuries, Grand Marnier’s

pack has artfully played with design,

constantly challenging conventions.

Yet certain qualities are ever present:

distinctive, decorative and highly

desirable. A lasting legacy of style,

deeply explored.

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I M M E R S I O N

L U X U RYA U D I E N C E

Attracting luxury audiences requires

bespoke thinking.

Our exploratory research, like our brand, was

unconventional. Carefully crafted in

approach, to elicit inspirational insights, we

engaged people in ways befitting their

connoisseurship.

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I M M E R S I O N

T H E M I X O L O G I S T

Behind every prestigious spirit

brand are mixologists infused with

passion and desire to share their

beliefs. Across leading global bars,

we interacted with thought-leaders

of the spirit world.

Their ideas were our inspiration.

They helped us raise the bar.

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C R E A T I O N

T H E G RAN D P O S I T I O N I N G

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C R E A T I O N

T H E I C O N I C I D E N T I T Y

Luxury brands exude creativity.

But are always unique, thoughtful

and instantly recognizable.

Consistency is essential.

Our ‘brand visual identity’ celebrates

our iconic imagery – the red

ribbon, historic crest and gothic

script - to delight consumers and

subtly build our equity.

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I M M E R S I O N

T H E C O R D O NR O U G E

With meticulous care,

Grand Marnier’s masterpiece,

Cordon Rouge, was subtly

enhanced to sharpen focus

on its most distinctive assets.

Iconic elements, such as the striking

red ribbon, were respectfully left

untouched.

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C R E A T I O N

T H E C UVÉ E S

In the higher echelons of our collection,

the Cuvées represent the finest

expressions of our luxury spirit mastery.

Vintage cognacs, from the best crus of

Grand Champagne and Petite

Champagne, are brought to the forefront

and beautifully presented, as true

works of art.

E X C E P T I O N A L E X P R E S S I O N S

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C R E A T I O N

T H E G RAN D D R I N K S

Co-created with notable mixologist, from all

corners of the world, we tailored a range of

delectable drinks – inspired by classic

cocktails – to showcase our transformational

liquid.

Sophistication for myriad occasions…

in a glass.

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C R E A T I O N

T H E CA M PA I G N

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C R E A T I O N

T H E U N C O N V E N T I O N A L

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The brand is now presented new, extraordinary ways, showcasing its hero role in exceptional cocktails and always challenging perceptions of convention.

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T H E D I S C O V E R Y O F E X C E L L E N C E

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P R I D E &

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For over 265 years, Appleton Estate has

harnessed the passion and pride of

Jamaica. By combining this commitment to

excellence, with the unique, luxuriant

qualities of the land and the highest quality

production processes, we produce rums

nothing short of exquisite.

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C R E A T I O N

M A S T E R F U L LY

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Intense tropical ageing - in the heart of

Jamaica - bestows our rums with an unrivalled,

multi-layered complexity, celebrated by

connoisseurs around the world.

Our long-aged editions, which maximize the

value of unique parcels of stock, are the

ultimate expressions of this excellence.

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C R E A T I O N

A J O Y T O

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Joy Spence is Appleton Estate’s much

treasured and globally respected Master

Blender, the first female to hold this title.

In celebration of her 20th anniversary in this

role, she blended her favourite rum

marques - all of which were over 25-year’s

old - to create the Joy Anniversary Blend.

An impeccably balanced masterpiece, with

a unique, personal touch.

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The crowning celebration of the brand’s ‘joyful excellence’ is The Joy Spence Appleton Estate Rum Experience,

a remarkable, interactive visitor attraction, housed in the grounds of our historic Jamaican Estate.

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B O U R B O N T H A T F L I E S H I G H

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O U R C O N V I C T I O N

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In Wild Turkey, we discovered pillars

of a luxury brand in the making, as yet

uncelebrated. Three generations of bourbon

makers, lead by industry legend Master

Distiller Jimmy Russell.

A purist approach to distillation

and barrel ageing, steadfastly held

for 100 years. Multi-award winning liquids,

characterized by their distinct, bold taste.

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L O N G B R A N C H

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In May 2018, Matthew McConaughey and

Master Distiller Eddie Russell launched their

rare, small-batch bourbon. Refined with

Texas Mesquite and oak charcoals, this

unique method deepens the flavour and

complexity of the whiskey…the result is an

exceptional bourbon with subtle hints of

smoke and spice.

Longbranch pays homage to the long

branches in our family trees. The name

Longbranch can be interpreted in two ways.

First by distance, which in this case

highlights the special family connections that

both Matthew and Eddie have to the states of

Kentucky and Texas.

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A H I N T O F T E X A S

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Mesquite, a native tree to Texas, is one of

Matthew’s favorite Texan flavors, so they

included it in the bourbon…the Mesquite

imparts a subtle sweetness to the bourbon,

with a unique char/smokiness on the palate,

that does not overpower the inherent Wild

Turkey Bourbon Spicy taste.

Once a sample liquid was decided on, Eddie

took over bringing it to fruition, and Matthew

worked on the packaging design.

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P R E M I U M

E X P R E S S I O N

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Priced at a 150 index vs. Wild Turkey 101,

competing with other super-premium

American Whiskey, Longbranch sits

comfortably within the aspirational yet

affordable price point, while expressing

unique individuality thanks to its Texan and

Kentucky roots, accompanied by great story

telling to evoke emotion…

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C R E A T I O N

T H E U LT I M AT E M A R R I A G EThe perfect marriage of two great American states: Texas and Kentucky. The Texas Mesquite and oak

charcoals, uniquely blended into Kentucky bourbon creating a deep and complex flavour

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T A I N G H I G H E R G R O U N D

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A L E G E N D ’ S N E W C H A P T E R

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O U R L E G A C Y

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To create a new chapter of Campari’s story,

one for an affluent, youthful audience, we

first looked to the past, to the spirit of our

experimental founder.

Davide Campari, maître liqueurist and

charismatic entreprenuer, stretched the

boundaries of flavour and convention, in a

search for the ultimate drinking experience.

His passion was our inspiration; his story

our guiding light.

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A H I G H B A R

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Davide’s intimate spirit knowledge came from

time spent behind the bar, honing his craft and

perfecting his art.

In honour of his original passion, we partnered

with his modern day equivalent – innovative,

luxury bartenders from around the world – to

create a contemporary masterpiece: Campari

Cask Tales.

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L I Q U I D L U X U RY

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Finishing Campari in Bourbon barrels introduces

a vanilla sweetness and oak smokiness to the

signature bitter taste. A refined balanced taste,

befitting its luxury postioning.

Cask Tales served shaken neat, or just with ice,

offers the purest enjoyment of its rich, signature

flavour. Bartenders can also experiment with the

unique blend in their personal cocktails, in the

spirit of Davide Campari.

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N AT U R A L

S T R E N G T H

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Fashioned in solid, thicker glass, the

Campari Cask Tales bottle reflects its

stronger, premium spirit profile.

This strength is balanced by an elegant,

natural paper label, with refined detail.

Finished, in true style, by the signature of

our inspiration, Davide Campari.

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T H E B E S T

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Beyond luxurious new expressions,

Campari is engaging with the world’s best

creative talent to produce powerful short

films that spread the brand idea ‘every

cocktail tells a story’.

Actors Zoe Saldana and Clive Owen,

guided by award winning directors,

Stefano Sollima and Paolo Sorrentino,

have taken Campari to new heights with

their work. And the story is just

beginning…

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